Correlation Between VanEck Pharmaceutical and ProShares Large

Can any of the company-specific risk be diversified away by investing in both VanEck Pharmaceutical and ProShares Large at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining VanEck Pharmaceutical and ProShares Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VanEck Pharmaceutical ETF and ProShares Large Cap, you can compare the effects of market volatilities on VanEck Pharmaceutical and ProShares Large and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in VanEck Pharmaceutical with a short position of ProShares Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Pharmaceutical and ProShares Large.

Diversification Opportunities for VanEck Pharmaceutical and ProShares Large

0.6

Correlation Coefficient

VanEck Pharmaceutical  ProShares Large

Poor diversification

The 3 months correlation between VanEck and ProShares is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Pharmaceutical ETF and ProShares Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Large Cap and VanEck Pharmaceutical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on VanEck Pharmaceutical ETF are associated (or correlated) with ProShares Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Large Cap has no effect on the direction of VanEck Pharmaceutical i.e., VanEck Pharmaceutical and ProShares Large go up and down completely randomly.

Pair Corralation between VanEck Pharmaceutical and ProShares Large

Considering the 90-day investment horizon VanEck Pharmaceutical ETF is expected to generate 1.42 times more return on investment than ProShares Large. However, VanEck Pharmaceutical is 1.42 times more volatile than ProShares Large Cap. It trades about 0.16 of its potential returns per unit of risk. ProShares Large Cap is currently generating about 0.12 per unit of risk. If you would invest  8,861  in VanEck Pharmaceutical ETF on September 7, 2025 and sell it today you would earn a total of  1,100  from holding VanEck Pharmaceutical ETF or generate 12.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

VanEck Pharmaceutical ETF  vs.  ProShares Large Cap

VanEck Pharmaceutical ETF

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Pharmaceutical ETF are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, VanEck Pharmaceutical may actually be approaching a critical reversion point that can send shares even higher in January 2026.

ProShares Large Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Large Cap are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, ProShares Large is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with VanEck Pharmaceutical and ProShares Large

The main advantage of trading using opposite VanEck Pharmaceutical and ProShares Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Pharmaceutical position performs unexpectedly, ProShares Large can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ProShares Large will offset losses from the drop in ProShares Large's long position.

The idea behind VanEck Pharmaceutical ETF and ProShares Large Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.